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Session 9 leb



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  • 3. DEALERSIndividual or firm that buys goods from aproducer or distributor for wholesale and/orretail resellingA dealer is a principal and not an agent 3
  • 4. DISTRIBUTORSAn entity that buys non-competing products orproduct lines, warehouses them, and resells them toretailers or direct to consumersprovide strong manpower and cash support to thesupplier or manufacturers promotional effortsusually also provide product information, estimates,technical support, after-sales services, credit to thecustomers 4
  • 5. WHOLESALERSPerson or firm that buys large quantity ofgoods from various producers or vendors,warehouses them, and resells to retailersWholesalers who carry only non-competinggoods or lines are called Distributors 5
  • 6. Buying AgentIndividual or firm that locates supplies at bestprices and terms, and (if required) warehouses orconsolidates them as one shipment on behalf of alocal or foreign buyer 6
  • 7. Selling AgentSelling agent or sales agenta person/firm who renders sales services to themanufacturer or the suppliermay provide support in terms of marketing,promotion, and other allied activities 7
  • 8. RETAILERSRetail : Derived from the French word“retaillier” = to cut off a piece or to break bulkRetailer : A business or person that sells goodsto the consumer, as opposed to a wholesaler orsupplier, who normally sell their goods to anotherbusinessRetailing : The last stage in movement of goodsor services to the consumer 8
  • 9. RETAILERSRetailing  all activities involved in the marketingof goods and services directly to the consumersfor their personal, family or household use 9
  • 10. RETAIL : THE INDUSTRYLargest private industry in the worldIn Western economy it accounts for 8% of GDPHas generated a 19% return for the shareholdersbetween 2004 - 06 where banks generated 9% andinsurance generated 15.2% returnLargest corporation in the world – Wal-Mart 10
  • 11. RETAIL : THE INDUSTRYAlmost 50 retail organizations in the worldfeature in the list of Fortune 500 companies.The world over retail is not only the oldest butalso one of the most advanced user of technology. 11
  • 12. Functions of a RETAILER From customers point of view, retailer serves by providing goods that he needs in the required assortment and at the right place and time. From an economic standpoint the role of a retailer is to provide real added value or utility to the customer. This comes from five different perspectives 12
  • 13. Functions of a RETAILER1. Provides finished goods and services in the form that is acceptable to the customer2. The retailer performs the function of storing the goods, and providing us with an assortment of products in various categories3. The retailer creates time utility by keeping the store open when the consumers prefer to shop 13
  • 14. Functions of a RETAILER4. By being available at a convenient location he creates place utility5. Finally when the products are sold ownership utility is created 14
  • 15. Functions of a RETAILERAll these are real benefits which the Retailer offers by: Being close to potential customers Fully understanding the motivating factors that drive their customers By serving the consumers by way of functioning as a marketing intermediary and creating time, place and ownership utility 15
  • 16. Functions of a RETAILERThe Retailer also serves the manufacturers by: Performing the function of distributing the goods to the end users Creating a channel of information from manufacturer to the consumer By serving as a final link in the distribution chain Recommending products where brand loyalty is not strong or for unbranded products 16
  • 17. buying selling dealer distributor wholesalers agents agents retailerstakes the title ofthe goodsprovides creditprovidesmanpowerprovidespromitionalsupport n tprovides product m einfo ig n ssprovides estimatesprovides technicalsupport Aprovides after-salessupportwarehousingfacilityupstreamdownstream 17